Electronic Funds Transfer (EFT) Toolkit
Want to save over $2,000* dollars per physician annually? Use this toolkit to learn how to use electronic funds transfer (EFT): "The electronic exchange or transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer-based systems."** EFT is similar to direct deposit. Accepting EFT payments from health insurers and automating your claims process can:
- Speed up payment
- Save time spent on manual processes such as depositing paper checks and phone calls to health insurers
- Eliminate lost explanation of benefits (EOBs) and expedite filing to secondary payers
- Reduce the risk of lost or stolen checks
- Free time for revenue-enhancing functions such as ensuring correct payment
- 71% improvement in time and expenses, and savings of 64% of accounts receivable tasks***
- Savings of more than $0.40 in processing costs for each paper check that is converted to an EFT*
- Based on an average of 6,200 checks, this equates to $2,480 in savings when using EFT instead of paper checks.
* Source: NACHA, the Electronic Payments Association, ACH Primer for Healthcare
** Source: CAQH COmmittee on Operating Rules for Information Exchange (CORE) Phase III CORE EFT & ERA Operating Rule Set, June 2012
***Source: Department of Veterans Affairs, April 2006 presentation at NACHA PAYMENTS Conference
Easily print all of the EFT toolkit resources together that are listed below.
- "Getting started: Accepting EFT payments in the physician practice" outlines the steps you should follow for evaluating whether to implement EFT in your practice and how to do so. It also outlines the most common EFT payment options, the features of each, and the costs to accept each payment option.
- Key questions to ask your vendors before signing an EFT agreement
- Watch an archived webinar led by industry experts to learn more about the EFT process and how it works for you.
- EFT and electronic remittance advice (ERA) work hand in hand to streamline remittance and payment processes. Access the AMA's ERA toolkit to learn more about using the ERA transaction.
- The suite of electronic health care transactions are designed to work together to create greater efficiencies for both physicians and health insurers. By adopting an integrated approach to using the electronic health care transactions, information gained from one transaction becomes useful information in the next transaction. Learn more about the potential savings and access a detailed case study.
- Access the AMA resource "Understanding the HIPAA standard transactions: The HIPAA Transaction and Code Set rule for an overview of electronic healthcare transactions.
- Streamline your claims process even more. Access toolkits and archived webinars to help your practice use all the electronic transactions.
- A new reporting tool from the AMA can help your practice identify the cost of processing claims with seven of the nation’s largest commercial health insurers. The AMA’s Administrative Burden Index provides scores on claims-processing measures for the commercial health insurers included in the AMA’s sixth annual National Health Insurer Report Card. Your practice can use this index when determining their practice automation priorities and in conjunction with contracting.
- CAQH solution for EFT enrollment: Get started with electronic payments today! The CAQH Solution for EFT enrollment enables physicians and healthcare professionals to enroll in EFT with multiple health plans through a single, secure, online process. Enter your required information once and then select which health plans receive your information. You can access the tool online at any time, make changes and easily have those changes distributed to the authorized health plans, helping to ensure that health plan records are consistent and up-to-date. Authorized health plans automatically receive the enrollment information electronically from CAQH. There is no cost for physicians and healthcare professionals to use the CAQH EFT enrollment tool.
- NACHA guide to understanding EFT payment processing: Take the mystery out of electronic health care payments with the document "ACH Primer for Healthcare: A Guide to Understanding EFT Payment Processing" developed by NACHA – The Electronic Payments Association. Written exclusively for physicians and other health care professionals, this valuable primer will help you understand the basics of EFT, identify steps for moving from paper-based payments to EFTs in compliance with government mandates, and answer your most pressing questions. Experts guide you step-by-step through the Automated Clearinghouse (ACH) Network, explaining transaction flow and applications, and identifying available treasury services which can assist you in leveraging EFT. Transition your staff and operations seamlessly using this free, information-rich resource.
- HHS operating rules for EFT: The U.S. Department of Health and Human Services (HHS) has adopted (August 10, 2012) a set of operating rules for electronic funds transfers (EFT) and the HIPAA transactions standards for healthcare payment and remittance advice (allowing for automated reconciliation of the electronic payment with the remittance advice) (Sec. 1104). Learn more about the EFT operating rules and how they can help your practice. Both the healthcare EFT standard and operating rules are effective January 1, 2014.
- CMS education on ERA/EFT: Learn how operating rules for EFT/ERA can speed up payment in your practice! View education from CMS about ERA/EFT for guidance and tips on ERA/EFT enrollment and usage. This resource will also help your practice understand how HIPAA mandates the consistent and uniform use of Remittance Advice (RA) codes [Group Codes, Claim Adjustment Reason Codes (CARC) and Remittance Advice Remark Codes (RARC)] to handle claims denials and streamline the claims revenue cycle process.